Having snooped around various Arcanum sites I've seen that I'm not the only one with this problem. Common on people playing it on Windows 7. The cursor seems to always have a square of random terrain/background surrounding the cursor. By no means a game-breaker but it -is- annoying as hell. I made a screenshot to show you what I mean. Anyone have any words of wisdom?
Try running the game via the "safe mode" shortcut located in your start>programs>sierra>arcanum menu.
Don't see a safe mode button anywhere - Bought mine off of GOG, If thats any help. Any other location safe mode might be on?
Create a shortcut to the main arcanum.exe, go to its properties, go to the target field, and at the end of the address, add " -no3d" without the quotations but with the space. That's safe mode, I believe.